Renter Reform Churn: Should BTR Operators Be Concerned?

TL;DR – Executive Summary

The Renter Reform Bill’s abolition of fixed-term tenancies will disrupt the economics and operational models of Build to Rent schemes. Expect higher resident churn, unpredictable voids, and operational surges. The winners will be those who harness data, build agile teams, and invest in customer experience to retain residents.

Renter Reform and the End of Predictable Leasing

The upcoming Renter Reform Bill will remove the safety net of fixed-term contracts, or ASTs.  We previously wrote two blogs, detailing our advice to BTR operators in light of the proposed changes - you can read the two-part series here: Part 1 and Part 2.

This is a fundamental shift for BTR landlords and operators. Without fixed-term commitments, tenancy durations become unpredictable, and operational planning faces new challenges.

Key consequences include:

• Increased churn rates – Residents can leave at short notice without paying a short-let premium.
• Unpredictable lettings cycle – No more seasonal leasing peaks to confidently plan around.
• Greater competition – A new scheme launching nearby could draw away residents instantly.
• ERVs Pricing volatility - ERVs are set up on a more frequent basis.

This isn’t just a regulatory change.  It’s a structural shift in how landlords and operators manage and monetise their assets.

Why Churn Will Spike in BTR

With no contractual lock-in, residents can act on impulse, moving for work, lifestyle, or convenience. They can also serve notice simply for being frustrated by poor service and inadequate building maintenance, contributing to a reduced enjoyment satisfaction rate.  For operators, that means:

• More frequent turnovers – Higher annual lets per property.
• No exit penalty – Residents can test a building without long-term risk.
• Opportunistic moves – Attractive offers from competing schemes become harder to defend against.

The result is that operational teams will face a continuous, unpredictable flow of move-outs and move-ins.

Operational Challenges Ahead

Without fixed-term expiries, operational surges could arrive without warning.

Picture this:
100 units vacating in the same month without prior alignment to a seasonal cycle.
Maintenance and cleaning bottlenecks as teams scramble to prepare units for new occupants.
Leasing pressure to fill units quickly without discounting ERVs excessively.

Staffing for agility
Staffing of in-house teams needs to be prepared for a potential surge at any time, not just during traditional leasing seasons. In a post–fixed-term environment, move-outs can cluster unpredictably, forcing operators to have additional leasing, maintenance, and cleaning resources on standby year-round. This “always ready” model is expensive, as it can require overstaffing during quieter periods.  Without a strategy to balance cost against responsiveness, operators risk either being caught short during a surge or overspending on underutilised staff.

Data Is the Difference Between Control and Chaos

In a post–fixed-term environment, data-driven leasing is essential. Relying on gut instinct will risk high voids and reduced yields.

Core capabilities include:

• Churn prediction – Spot at-risk residents early and re-engage them.
• Dynamic pricing – Protect ERVs while ensuring competitive offers.
• Competitor monitoring – Track local schemes to anticipate potential resident loss.

Customer Experience as a Churn Shield

When contracts can’t lock residents in, exceptional customer experience becomes the most powerful retention tool.
Rapid, proactive maintenance, personalised resident engagement, and transparent, responsive communication create an environment where residents choose to stay. In today’s competitive BTR market, service excellence isn’t just about preventing churn; it’s a strategic advantage that can actively attract residents from rival schemes.

The Paradox: Rising Costs, Uncertain Gains

Two market dynamics collide here:

1. Traditional agency fees will rise – Without guaranteed tenancy lengths, traditional agencies spread risk by charging more.  They’ll become more expensive to support leasing operations whilst remaining incentivised by the client who is willing to pay the most commission.
2. Private landlords will also suffer – Tenancy lengths will reduce and increased churn cannot be forecast in advance. The increased uncertainty may cause many landlords to sell their portfolio, but equally renters may opt for a privately owned property for a short period, if the costs are lower.
3. In-house costs will climb – Marketing, turnover, and leasing costs rise with every move-out.

The net effect? Higher costs and lower predictability, unless operators innovate now.

How Home Made Helps BTR Operators Stay Ahead

We work with BTR landlords and operators to:

• Develop data-led leasing and pricing strategies that protect yields.  Our tools and processes help to forecast demand spikes and resource accordingly.
• Build agile staffing frameworks to handle operational surges.  Our flexible models target support where and when it is needed most.
• Provide data and insights to curate resident retention programmes that reduce voluntary churn.

Our mission: keep occupancy high, protect ERVs, and ensure your teams stay in control - even under churn pressure.

Final Thoughts – Let’s Talk

The Renter Reform Bill will fundamentally reshape how BTR operates. The most adaptable operators will turn churn into a competitive advantage.

We want to hear from you:

• How are you preparing for unpredictable move-out volumes?
• Are you rethinking staffing models and leasing strategies?

Contact us directly at btr@home-made.com and we’d be delighted to demonstrate how we can support.